Pinterest (NYSE:PINS) has slipped 7.2% today in the wake of some analyst caution, including a downgrade to Neutral at Guggenheim.
Pinterest Ads Manager data is pointing to user declines for the second straight month, and download data is also pointing to further declines, the firm notes.
That's leading it to cut its Q4 user estimate to 438 million from a previous 447 million, both of which are below consensus for 448 million users.
"With shares under consistent pressure since reporting below-consensus user trends in 2Q21, we have been hesitant to downgrade in front of potential user stabilization," the firm says, but adds that the data is pointing to further weakness.
"We still see value creation potential for the company's large global user base and high-purchase-intent user behavior," Guggenheim says. "However, we don't see the platform's use case as developing as rapidly as peers, creating risk that competitors improve their social commerce offerings more quickly than Pinterest capitalizes on its position."
It's cut its price target to $39 from $46, now implying just 15% upside from today's lower price.
Meanwhile, Wolfe has initiated Pinterest at Peer Perform, saying it likes the ongoing product transition there, but "the near-term uncertainties on its revenue and MAU growth trajectory are likely to keep multiples under pressure."
Wolfe will get "more constructive" when it sees early signs of benefits from recent product initiatives. It's set a $45 price target.